In an open economy, an increase in net exports because of increased demand for domestic products by foreigners should cause the domestic real interest rate to ________ and should cause desired saving minus desired investment to ________.
A. fall; fall
B. rise; fall
C. rise; rise
D. fall; rise
Answer: C
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Which does the government not control directly?
a) Spending on health b) Spending on defence c) Firms' investment decisions d) Spending on state education
Intermediate goods are
A. the stock of all resources excluding labor. B. goods that are used up entirely in the production of final goods. C. equal to the receipts of firms. D. goods that get sold to the U.S. government.
Refer to the information provided in Table 21.6 below to answer the question(s) that follow. Table 21.6
Refer to Table 21.6. Personal consumption expenditures in billions of dollars are
A. 1,000. B. 1,100. C. 1,300. D. 1,700.
During the Great Depression, the unemployment rate for the United States peaked at approximately
A. 45%. B. 10%. C. 25%. D. 70%.